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Request for 2 items: attached problem and template for Problem completion (must be in template provided) and paper .
Request must be timely and original paper as well. If can complete please advise.
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Chapter 9 Problem
Complete the following problem from Chapter 9 and submit to your instructor. Problem: 9-23. This problem will be graded for accuracy.
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Stock Options Paper
In recent months there have been many news stories in the press about executive compensation with stock options. This type of compensation occurs when an executive is granted the “option” to purchase the company’s stock at a certain price sometime in the future. The theory is if the executive is effective his management skills will lead to a higher stock price. As a reward the executive can purchase the stock at the earlier, lower price and lock in an automatic gain in his shares. However, certain companies have been falsifying the actual date when the stock options are granted to their executives. Research this situation on the internet or through the university library. Write a 400-word paper describing the situation and the implications of the practice including any legal or ethical ramifications.
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Problem 9-23: For this problem, you can use the excel template, or the following table. For periods 2012 and 2011 include the relevant values and your calculation. All of the ratios and samples of their calculations are contained in the textbook. A special annotation is required at footnote (1), pertaining to the three calculations. The first answer has been provided as an example.
2012 2011 a. Working Capital 250,000 – 151,800 = 98,200
b. Current Ratio
c. Quick Ratio
d. Accts Receivable Turnover
e. Ave # Days to Collect Accts/Rec
f. Inventory Turnover
g. Ave # Days to Sell Inventory
h. Debt to Assets
i. Debt to Equity
j. Times Interest Earned
k. Plant Assets to Long-Term Debt
l. Net Margin
m. Asset Turnover
(1) n. Return on Investment
(1) o. Return on Equity
(1) p. Earnings per Share
q. Book Value per Share
r. Price-Earnings Ratio
s. Dividend Yield on Common Stock
(1) Footnote regarding calculations: |
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Violators will be prosecuted.
354 ACC201
352 ChEp-.er9
L02 Problem 9-22 Horiwnta/ analysis
Financial statements for Bernard Company follow.
C ECIAG
Total Assets: -11.6%
Total Uabllities: + 14.4%
BERNARD COMPANY
Balance Sheets
As of December 31
Assets
Current assets
Cash
Martetable secunties
Acco’JI1ts recemble Inet)
Inventones
P epald ItBms
Total current assets
Inwstmerns
!’fa lnet!
und
lOtaI assets
Cur,rertiabltties
Gte$ PfYIbIe
cc pc e
S espaya e
otal current rIB es
ncurrel1lliab es
80 ds payable
Other
Total noncurrent tiabiities
Totalliablhties
Stockholders’ equity
Preferred stock. par value S10, 4% cumulative. non-
participating; B.lDl shires authorized and issued
Common stock. no par; 50,000 shares authorized;
10,000 shares issued
Retained earnings
Totel stockholders’ equity
Totaillabiilles and stockholders’ eQurty
2012 2011
S 16,000
20,000
54,000
135,000
25,000
250,000
27,000
270,000
29.000
$576.000
S 17.000
113,QJ
21,000
151,800
80,000
80,000
132,:dlO
292,200
$576,000
SIUJOO
6.DOO
46.DOO
143.DOO
ID.DOO
217.DOO
20.000
255.DOO
24.DOO
$516.DOO
S 6,000
IOD.DOO
15,OOl
121,OOl
80.000
80.000
1flltOOO
268.DOO
S516.ooo
. . ” or e ~
Revenues
Sales Joetl
Other revenues
Total revenues
2012 2011
$l3O,000
8,000
238,000
$210.000
5.000
215.000
cominued
— ——– ———————
PRINTED BY: genevieve.rodriguez@verizon.net. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publishers prior permission.
Violators will be prosecuted.
Survey of Accounting. Third Edition
2012 21111
fina 51 !bremen:: Analy!!is 353
Expenses
Cost of goods sold
Selling, general, and admlnislfatlve expenses
Interest axpense
Income tax expense
Total expenses
Net earnings fnet incomel
Retained earnings, January 1
Less: Preferred stock dividenDs
Comrr;Oll stock dividends
Retained eam/ngs, December 31
1211,000
55,000
8.000
23.000
206,000
32.000
l!Jl,DOO
2,800
5.000
SI32.200
103,000
50,000
7,200
22,000
~
32,800
83,000
2.800
5,000
$l!Jl,OOO
Required
Prepare a horizontal analysis of both the balance sheet and income statement.
Problem 9-23 Ratio analysis
Required
Use the financial statements for Bernard Company from Problem 9-22 to calculate the following
for 2012 and 2011.
a. Working capital
b. Current ratio
c. Quick ratio
d. Accounts receivable turnover (beginning receivables at January I, 201 I, were 547,000)
Co Average number of days to collect accounts receivable
f. Inventory turnover (beginning inventory at January 1,2011, was SI4O,000)
g. Average number of days to sell in ‘cotory
h. Debt to assets ratio
t Debt to equity ratio
j. Times interest earned
k. Plant assets to long-term debt
I. Net margin
m. Asserrurnover
IL Return all. investment
0. Return 00 equity
P. Earnings pet share
q. Book value per share of COlIUllOIl stock
r, Price-earnings ratio (market price per share: 2011, 511.i5; 2012, SI2.5O)
So Dividend yield on common stock
Problem 9-24 Vertir:aJ tIIUllysu
Required
Use the financial statements for Bernard Company from Problem 9-22 to perform a vertical
analysis of both the balance sheets and income statements for 2012 and 2011.
LD 2, 3, 4. 5, 6. 7
JC
tHEe F GURES
k, 21112:2.0:1
p. 21111:S2.96
LD2
JC
CHECKF URE
2012 Retained E.arnings! 23%
